Evaluating the Performance of Salespeople Module Ten Evaluating the Performance of Salespeople

Purposes of Salesperson Performance Evaluations To ensure that compensation and other reward disbursements ___________________________ _______________________________________ To identify salespeople ___________________ To identify salespeople whose employment ____________________ and to supply evidence to ____________________________________ 2

Purposes of Salesperson Performance Evaluations To determine the specific _____________ and ___________ needs of individual salespeople and the overall sales force To provide information for __________________ ________________ To ______ criteria that can be used to _________ and ________ salespeople in the future 2

Purposes of Salesperson Performance Evaluations To advise salespeople of ________________ To _____________ salespeople To help salespeople ________________ To ___________ salesperson _____________ 2

Salesperson Performance Evaluation Approaches General conclusions: Most evaluate on an _________ basis Most combine _______ and _________ criteria which are evaluated using __________ and _____________ measures When used, ___________________ or ________ are set in collaboration with salespeople Many assign ___________ to different ___________ and incorporate territory data. 3

Salesperson Performance Evaluation Approaches General conclusions: Most use _____________________________ Most are conducted by the _______________ who ______________ the salesperson Most provide a ________________ of the review and personal discussion 3

360-Degree Feedback System Salesperson is evaluated by ________________ Helps salespeople better understand their ____________ ______________ to their organization and their customers Sales Manager Evaluation Salesperson Team Members Evaluation Oneself Evaluation Internal Customers Evaluation External Customers Evaluation 3

Key Issues in Evaluating and Controlling Salesperson Performance Outcome-Based Perspective Focuses on __________________________ with _________ monitoring or directing of salesperson behavior by sales managers Behavior-Based Perspective Incorporates complex and often subjective _______________________________________ and ______________ with ____________ monitoring and directing of salesperson behavior by sales managers 4

Perspectives on Salesperson Performance Evaluation Outcome-Based _________ monitoring of salespeople __________ managerial direction of salespeople Straightforward ___________ measures of results Behavior-Based ___________ monitoring of salespeople ________________ of managerial direction of salespeople ___________ measures of salesperson characteristics, activities, and strategies 6

Dimensions of Salesperson Performance Evaluation 7

Criteria for Performance Evaluation Behavior: Consists of criteria related to ______________ by individual salespeople Sales calls, customer complaints, required reports submitted, training meetings, letters and calls Should not only address activities related to short-term sales generation but ___________________ ________________________________________________________________________________ 8

Criteria for Performance Evaluation Professional Development: Assess ___________ in certain characteristics of salespeople that are related to _______________ ________________in the sales job Characteristics include - ________________________________________________________________________________________________________________________ 8

Criteria for Performance Evaluation Results: Salespeople _____________________ based on ___________________ such as – sales, market share, and accounts A sales quota represents a ________________ __________ for a territory, district, region, or zone Some research shows that rewards for achieving results have a ______________ on performance and satisfaction 8

Market Response Framework Salesperson Factors Characteristics Behavior Planning and Control Unit Environmental Factors Organizational Factors 12

Elements Important in Assigning Sales Quotas ____________________________ within the territory _______________________ of the territory _____________________ within the territory ______________ by the sales manager _______________the sales representative _______________ of products sold 13

Elements Important in Assigning Sales Quotas Sales representative’s past ______________ _____________ of product line Financial support (e.g., compensation) a firm provides Relationship of product line Amount of ____________ support 13

Criteria for Performance Evaluation Profitability: Salespeople have an __________________ through the specific products they sell and/or through the prices they negotiate for final sale. Salespeople affect _____________ by the expenses they incur in generating sales. Criteria Examples Net profit dollars Gross margin per sale Return on investment Number of orders secured Selling expenses versus budget 8

Performance Evaluation Methods: Characteristics any method should include _______________ 12

Performance Evaluation Methods Graphic Rating/Checklist Methods Salespeople are evaluated using some type of ______________________________ Especially useful in evaluating behavioral and professional development criteria May be filled out by ______________ Disadvantage is providing evaluations that ____________________________ 13

Performance Evaluation Methods: Ranking Methods ________ all salespeople according to _______ performance on each performance criterion These methods _________________ as to the performance of individual salespeople May be complex Rankings only reveal __________________ evaluation 14

Performance Evaluation Methods: Objective-Setting Methods Management By Objectives (MBO) _________________ of well-defined and measurable goals within a specified time period. Managing activities within the specified time period toward the accomplishment of the stated objectives. Appraisal of performance ____________________. 15

Performance Evaluation Methods Behaviorally Anchored Rating Scales (BARS) Links ___________ to specific __________ __________ are used to develop performance _________ and critical ________________ Positive feedback about _________ may be more affective than positive ___________ feedback 16

Performance Evaluation Bias Occurs when a manager’s evaluation of a salesperson ________ by considerations other than the specified criteria Common sources of bias: _________________________________ 17

Evaluating Team Performance _________________ on which members will be evaluated and the methods used to evaluate performance ______________ between team performance and positive outcomes to promote individual and team effort May be beneficial to ___________ team to help _______________________________ 18

Framework for Using Performance Information Evaluate Salespeople against ________________________ __________ Salesperson Evaluations to _________ Problem Area _________Problem Areas to _____________ of Performance Problems _________ Sales Management Actions to ________ Causes of Future Problems and to _________ Existing Problems 19

Salesperson Job Satisfaction Job satisfaction _______ to turnover, absenteeism, motivation, and organizational commitment Job satisfaction may be ___________________ (direction of relationship is unknown) INDSALES may be used to measure job satisfaction Results may identify areas where manager may intervene to improve job satisfaction 20